Editor’s Insights – June 2022

To quote Sandra Barton of Alliance Bank, “Southern Arizona is a hotbed of growth and activity, especially in commercial real estate, and particularly when it comes to the industrial segment. According to Tim Healy, “we are tracking approximately 6.8 million square feet of speculative and build to suit activity that is planned, in for permit or under construction (PPUC), which far outpaces any development cycle since I’ve been in the business.” This represents an additional 15% of inventory coming on line in 2022 and 2023. On pages 28–31, this issue features 18 planned industrial projects totaling over 5 million square feet of proposed industrial space.

Kansas developer Flint Development recently paid $21.2 million ($164,286 per acre/$3.77 PSF) for 129 acres at Crossroads at Gladden, Blocks 1 and 2. The transaction closed on May 12, 2022. Flint plans to develop over 1,700,000 square feet of Class “A” industrial space, with the first two spec buildings totaling nearly 1,000,000 square feet kicking off construction immediately as part of its Southern Arizona Logistics development. More details on this significant transaction can be found here.

In a recent exchange with Sun Corridor Inc., they report that they have never been busier. Over the past 12 months, they have seen a strong increase in automotive related projects. Additionally, they indicated they have seen more semiconductor manufacturing and supplier projects in the past nine months than in the last five years prior.

Projects from California continue to dominate their pipeline and 95% of current projects are looking for industrial real estate. Over half of their projects are considering BTS opportunities.

A big thanks to all the contributors in this jam-packed industrial issue including Tim Healy, CBRE; Bill Rodewald, Schnitzer Properties; Jose Dabdoub, Cushman & Wakefield | PICOR; Sandra Barton, Alliance Bank; Stephen Cohen, Cushman & Wakefield | PICOR; Gordon Wicker, Quality Valuation Inc.; Ian Turner, Commercial Industrial Arizona Advisors; Leigh-Anne Harrison, Chasse Building Team; Korey Wilkes, Butler Design Group; Eileen Lewis, Torch Properties LLC; Max Fisher, BRD Realty LLC; Barbara Jackson, Tango Commercial; and Bryan McLaren, Zoned Properties.

Second Quarter 2022 Industry Events

Eller College of Management’s Breakfast with the Economists | Thursday, May 26, 2022 | 7:30am–9:00am |The Westin La Paloma Resort & Spa, 3800 East Sunrise Drive.

Join Eller’s George Hammond and Anthony Chan, former Chase chief economist, as they offer analysis and insights on what to expect for the global, state, and local economies in the future. Register here.

MPA’s Cocktails and Connections | Thursday, May 26, 2022 | 5:00pm–7:00pm| One South Church Avenue, Suite 1500

MPA’s Cocktails and Connections is back, and they are pleased to announce the first one of 2022 will be hosted by Snell and Wilmer. Register to join us at the free, open to anyone event.

CCIM Chapter’s monthly meeting | Tuesday, June 14, 2022 | 11:30am–1:00pm | Doubletree by Hilton Tucson Reid Park, Bonsai Room S

Southern Arizona CCIM Chapter’s monthly meeting focuses on important issues impacting real estate developers, property and business owners. The program speakers are Allyson Solomon, Executive Director of Metropolitan Pima Alliance and Rory Juneman, Board Chair of MPA. Register here.